KUALA LUMPUR: Malaysia's airports are falling behind their regional counterparts, revealed Finance Minister II Datuk Seri Amir Hamzah Azizan.

In listing reasons why the share sale of Malaysia Airports Holdings Bhd (MAHB) had to be done, he said Malaysia's aviation sector only contributed 3.5 per cent to the country's gross domestic product (GDP).

"The International Air Transport Association (IATA) reports that aviation contributes 12 per cent to Singapore's GDP and 16 per cent to Thailand's GDP.

"Additionally, pre-pandemic tourist arrivals in Malaysia grew by just 1 per cent annually over the past decade, compared to an 8 per cent annual growth rate in neighbouring countries," he said in a special chambers session in Parliament today.

Amir Hamzah said long-haul flight routes from Kuala Lumpur to major destinations such as London, Tokyo, and Beijing had decreased from 33 in 2010 to just 22 in 2023.

In contrast, he said, regional competitors had seen an increase in their long-haul routes, with Singapore boasting 40 routes and Thailand with 55.

Among the direct long-haul flights from Singapore include to Paris, New York, and Addis Ababa.

This gap, he said, limited Malaysia's tourism and investment potentials.

"Singapore has 208 direct flights to Europe a week, compared to only 33 flights from Malaysia.

"Singapore also has 60 weekly flights to North America, while we do not have a single flight going there."

Expanding further, he said Sabah's capital Kota Kinabalu, with a population of one million people, had 14 international routes serviced by 14 airlines, while Penang, with a population of 1.8 million, had 18 international routes serviced by 23 airlines.

Amir Hamzah said in comparison, Phuket Island, in Thailand, with only 600,000 people, had 50 international routes serviced by 54 airlines.

"We want more flight options for our citizens and tourists."

In terms of awards, he said, out of the 25 best airports in the Asia Pacific, Indonesia won 11 awards last year while Malaysia only won one, for the Langkawi International Airport.

On the investment side, he said MAHB only spent about RM1.4 billion on 39 airports over the past five years, compared to RM6.6 billion in Thailand and RM12 billion in Indonesia.

"Therefore, the time has come. If we do not make any changes now, Malaysia will fall further behind in this region.

"The efficiency of the aviation sector is crucial to support economic development. The level of airport connectivity in international networks and operational efficiency at airports are key determinants of trade and tourism growth."

He said as the world experienced the current global supply chain shifts following geopolitical issues such as the United States-China conflict, international companies were actively seeking alternative investment destinations, with Asean countries being seen as strategically positioned.

"Therefore, if we want to attract more investors to our country, we must seize this opportunity by ensuring higher levels of connectivity, especially our trading and investment partners."

https://www.nst.com.my/news/nation/2024/07/1071818/malaysias-airports-falling-behind-asean-counterparts-says-amir-hamzah